Dogs of the Dow 2023 Performance: A Year in Review

The Dogs of the Dow 2023 performance was a mixed bag, with some stocks performing better than others.

The Dow Jones Industrial Average (DJIA) started the year at 36,338.08 and ended it at 32,997.82.

In 2023, the average price of the 10 Dogs of the Dow stocks increased by 6.35% compared to the DJIA's decline of 9.07%.

The year was marked by a significant decline in the value of the DJIA, with a total decrease of 9.07% by the end of 2023.

The Dogs of the Dow strategy has been around since 1991, and it's a well-known approach to maximizing dividend yields by investing in the 10 highest-paying dividend stocks from the DJIA each year.

The strategy's track record shows that its returns closely trail those of the Dow Jones Industrial Average (DJIA), but returns will vary depending on the time period analyzed.

The Dogs of the Dow relies on the premise that blue-chip companies don't alter their dividend to reflect trading conditions, making dividend yield a good measure of a company's worth.

Here are the 2023 Dogs of the Dow, listed in order of their dividend yield:

The Dogs of the Dow strategy relies on the premise that blue-chip companies don't alter their dividend to reflect trading conditions, making dividend a measure of a company's average worth.

The strategy involves selecting the 10-highest dividend-yielding stocks in the DJIA after the stock market closes on the last day of the year.

These stocks are then invested in equally on the first trading day of the new year, and the portfolio is held for a year before repeating the process.

The universe of stocks is limited to blue-chip stocks, making the strategy relatively safe.

To implement the Dogs of the Dow strategy, you can either hand-pick individual stocks or invest directly in the Dow through exchange-traded funds (ETFs).

The 2023 Dogs of the Dow are listed below:

The Dogs of the Dow strategy is a well-known approach that's been around since 1991, and it's designed to help you maximize your investment returns by buying the 10 highest-paying dividend stocks from the Dow Jones Industrial Average (DJIA) each year.

The strategy is relatively simple: you select the 10 highest dividend-yielding stocks in the DJIA after the market closes on the last day of the year, and then invest an equal dollar amount in each of them on the first trading day of the new year.

This approach is low-maintenance and long-term, and it's intended to mimic the performance of the DJIA. The results are impressive, with the strategy's returns closely trailing those of the DJIA over time.

Here's a brief overview of the strategy's key components:

This approach can be a good option for individual investors looking for a relatively safe and easy way to invest their money, as the universe is limited to blue-chip stocks.

The Dogs of the Dow strategy has had a respectable performance over the long term, with a trailing total return of 10.02% from 2013 to 2023, just slightly underperforming the Dow Jones Industrial Average (DJIA) with a 11.48% return.

However, in the last five years, from 2018 to 2023, the Dogs of the Dow trailed the DJIA with a wider gap, turning in trailing total returns of 5.29% compared to the DJIA's 8.39%.

As we can see, the Dogs of the Dow strategy has had its ups and downs, but it's essential to remember that past performance is no guarantee of future results, as the strategy stumbled in the first quarter of 2023 with a 0.5% return, lagging behind the DJIA's 0.9% return and the S&P 500 Index's 7.5% return.

The Dogs of the Dow strategy had a respectable performance for the decade from 2013 to 2023, with a trailing total return of 10.02%, very similar to the Dow Jones Industrial Average's trailing total return of 11.48%.

During the financial crisis of 2008, the Dogs of the Dow experienced greater losses than the DJIA.

Despite this, the strategy made up ground and performed well in the following years.

In the last five years, from 2018 to 2023, the Dogs of the Dow trailed the DJIA, with a trailing total return of 5.29% compared to the DJIA's 8.39%.

The Dogs of the Dow strategy, which focuses on investing in the highest dividend yielding stocks in the Dow Jones Industrial Average Index, stumbled in the first quarter of 2023.

The strategy's return of 0.5% slightly lags the complete Dow Jones Industrial Average Index return of 0.9%. This is a significant difference, especially when compared to the S&P 500 Index return of 7.5%.

The performance of the Dow Dogs strategy is a stark contrast to 2022, when dividend focused stocks outpaced the broader S&P 500 Index.

One of the main contributors to the Dow Dogs strategy's poor performance is Intel, which cut its dividend by 66% in February. Despite this drastic cut, Intel's stock performance has not been hindered.

The dividend cut has actually had a minimal impact on Intel's stock performance, as seen in the table that compares the Dow Dogs strategy to the complete Dow Jones Industrial Average Index.

Related reading: Dow Chemical Ticker Symbol

The Dogs of the Dow are made up of the 10 companies in the Dow Jones Industrial Average that pay the highest dividend yield as of the last trading day of the year. This strategy is simple and straightforward.

The companies chosen are based on their dividend yield, which is a key factor in the Dogs of the Dow strategy. The companies that make up the Dogs of the Dow in 2023 are Verizon, Dow, Intel, Walgreens, 3M, IBM, Amgen, Cisco, Chevron, and JP Morgan Chase.

Here are the 10 companies that make up the Dogs of the Dow in 2023:

ETF tracking the Dow can be a bit tricky, but there are some options available. The Invesco Dow Jones Industrial Average Dividend ETF (DJD) and the ALPS International Sector Dividend Dogs ETF (IDOG) both track the Dow with a focus on dividend performance.

These ETFs aren't exact replicas of the Dogs of the Dow strategy, but they do offer a similar investment approach. The Dogs of the Dow strategy involves investing in the top 10 dividend-performing companies in the Dow.

Worth a look: Dogs of Dow Etf

The Companies in the Industry that make up the Dogs of the Dow are quite diverse.

Verizon is one of the companies in the Dogs of the Dow, a telecommunications giant.

Dow itself is another member, a chemical company with a rich history.

Intel is a tech company that rounds out the list.

Walgreens, a pharmacy chain, is also included.

3M, a multinational conglomerate, brings a broad range of products to the table.

IBM, a technology company, is known for its innovative solutions.

Amgen, a biotechnology company, focuses on developing new treatments.

Cisco, a networking equipment company, plays a crucial role in modern infrastructure.

Chevron, an energy company, is a major player in the industry.

JP Morgan Chase, a financial institution, rounds out the list.

Here are the companies in the Dogs of the Dow as of 2023:

As we dive into Qwen's Market Insights and Analysis, let's take a closer look at the Dogs of the Dow for 2023. The Dow Jones Industrial Average was down 9.2% in 2023, but some of its components performed much better.

The top performer among the Dogs of the Dow was Merck, which increased by 27.6% in 2023. This was largely due to the company's strong sales of its COVID-19 vaccines.

Merck's success was followed closely by Procter & Gamble, which rose by 23.1% in 2023. The company's steady sales of consumer staples helped drive its growth.

The Dow's average return was -9.2% in 2023, but some stocks performed significantly better than the average. This highlights the importance of diversification in investing.

Johnson & Johnson was another strong performer, increasing by 18.3% in 2023. The company's diversified portfolio of pharmaceuticals and medical devices contributed to its success.

The Dogs of the Dow strategy involves investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average. This strategy can be a good way to generate income in a low-interest-rate environment.

Coca-Cola was the only Dow stock to increase in 2023, rising by 1.1%. The company's strong brand and steady sales helped it weather the market downturn.

The Dogs of the Dow strategy has a mixed track record, but it can be a useful tool for investors looking to generate income.

For another approach, see: Performer Tires

Dividend stocks have been underperforming, with the SPDR Portfolio S&P 500 High Dividend ETF down nearly 5% this year, erasing its 4.8% dividend yield.

The S&P 500 stocks that pay a dividend are up just 0.81% on average this year, which is a stark contrast to the 21% rocketed by the S&P 500 as a whole.

In fact, stocks paying no dividends are up 19% on average this year, according to Bespoke Investment Group.

Investors have been down on dividends this year, with the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) down nearly 5%, erasing its 4.8% dividend yield. This is a stark contrast to the S&P 500, which has rocketed 21% this year.

The average return for S&P 500 stocks that pay a dividend is a paltry 0.81% this year, according to Bespoke Investment Group. This is a far cry from the 19% average return for stocks that don't pay dividends.

Dividend stocks are lagging the market, with the Dogs of the Dow up an average of just 2.8% in 2023. This is the widest gap since 2006, and it's not a one-time fluke - the Dogs of the Dow have trailed the market in four of the past five years.

The Dogs of the Dow strategy is a low-maintenance, long-term approach that selects the 10-highest dividend-yielding stocks in the DJIA and invests an equal dollar amount in each of them.

Investors have been disappointed with dividend stocks in recent years, with the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) down nearly 5% this year, erasing its 4.8% dividend yield.

The S&P 500 stocks that pay a dividend are up just 0.81% on average this year, while those paying no dividends are up 19% on average.

The Dogs of the Dow in 2023 are up an average of just 2.8%, lagging the market by the widest amount since 2006.

Here are the top 10 highest yielding Dow stocks sorted by analysts' 12-month price targets:

The ALPS Sector Dividend Dogs ETF (SDOG) applies the 'Dogs of the Dow Theory' on a sector-by-sector basis to provide high dividend exposure across 10 sectors of the market.